Specs pressure farm markets
DES MOINES, Iowa (Agriculture.com)--Speculative selling pressure pushed the CME Group corn, soybean and wheat markets lower Thursday.
The Dec. corn futures contract closed 2 3/4 cents lower at $4.22. The Jan. soybean futures contract finished 1 1/2 cents lower at $13.28. March wheat futures are 9 3/4 cents lower at $6.52 per bushel. The Jan. soymeal futures contract finished $1.80 per short ton lower at $446.10. The Dec. soyoil futures ended $0.24 higher at $40.38.
In the outside markets, the NYMEX crude oil is $0.52 per barrel higher, the dollar is lower and the Dow Jones Industrials are 51 points lower.
Jack Scoville, PRICE Futures Group vice-president, says that despite closing lower, the corn has held together very well.
"I think that it about a lack of offer as much as anything. We are below the cost of production for a lot of producers here and also in South America and the offer is very light," Scoville says.
Demand might not be that hot, but it appears to be good enough to hold corn even with a disappointing export sales report, he says.
"Specs are vey short and probably will try to cover part of this over the next couple of weeks."
For the wheat market, spec-selling tied to the bad export sales and the big Canada numbers are pressuring prices, he says.
Soybeans are lower on the disappointing export sales, Scoville says.
"Plus, China bought, but for the next crop. Are they done with old crop? We need to see current crop sale or else I will think so and if that is the case the upside might be very hard to keep going even if USDA is bullish next week," he says.